Montréal, Québec, Canada, May 12, 2022, Manganese X Energy Corp. (TSXV: MN) (FSE:9SC) (OTC: MNXXF) ("Manganese X", "MN", or the "Company") is very pleased to announce positive results from the independent Preliminary Economic Assessment ("PEA") for its wholly owned Battery Hill project (the "Project") located near Woodstock, New Brunswick. The PEA was prepared by Wood Canada Ltd. ("Wood"), an independent engineering services group with extensive experience in mining and mineral processing.
All dollar values are in US dollars unless otherwise stated.
PEA Highlights:
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Robust Economics
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After-tax net present value using a 10% discount rate ("NPV10"): $486 million
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25% internal rate of return ("IRR")
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Capital costs ("CAPEX") of $350 million with a payback of 2.8 years
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Average annual gross revenue of $177 million per year over the 47 years Project life
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Average annual gross revenue of $220 million over the first seven years
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Life of mine ("LOM") operating cost ("OPEX") of $122/t material processed
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HPMSM Market Price
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Base case market price of $2,900/t for battery-grade high-purity manganese sulphate ("HPMSM") is well below the long-term forecast price of $4,200/t HPMSM estimated by CPM Group
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Price Sensitivity
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Base case undiscounted after-tax cashflow: $3.4 billion
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Sensitivity analysis shows after-tax NPV10 reaches $914 million at $4,200/t HPMSM - see sensitivity analysis Table 1 below
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Long Mine Life
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40-year mine production life and seven years of stockpile reclaim feed
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Total LOM production of 3.2 million tonnes of HPMSM
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Average annual HPMSM production of 68,000 tonnes over the LOM
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Average annual HPMSM production of 84,000 tonnes in the first seven years of production
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Low Environmental Impact
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Flowsheet produces a filtered residue leach product with initial acid-base accounting and non-acid generating test results showing no acid drainage risk
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Project Objectives
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Project is now advancing towards a pilot project, pre-feasibility study as well as advancing a drilling program to upgrade and expand manganese resources